MOLINA COMPANY Cost of Goods Manufactured Schedule For the Year Ended December 3

Question

MOLINA COMPANY Cost of Goods Manufactured Schedule For the Year Ended December 31, 2014 Work in process (1/1) Direct materials $210,000 Raw materials inventory (1/1) Add: Raw materials purchases Total raw materials available for use Less: Raw materials inventory (12/31) 54500 158,000 212500 22,500 $190,000 Direct materials used Direct labor Manufacturing overhead 68000 Indirect labor Factory depreciation Factory utilities Total overhead 18,000 36,000 68,000 122,000 Total manufacturing costs Total cost of work in process Less: Work in process (12/31) 81,000 $530,000 Cost of goods manufactured

Explanation / Answer

The missing figures in the Cost of Goods Manufactured Schedule can be calculated as given below:

Total Cost of Work in progress = Cost of Goods Manufactured + Ending Work in Progress(12/31)

                                                = $ (530,000+ 81,000)

                                                = $ 611,000

Now, Total Cost of Work In progress = Opening Work In Progress  + Total manufacturing Cost

or, $611,000= $ 210,000+ Total Manufacturing Cost

or Total manufacturing Cost = $ 401,000

Further,

Total Manufacturing Costs = Opening Work in progress(1/1) + Direct Materials+ Direct Labor + Manufacturing Overhead.

or $ 401,000 = $210,000+ $190,000+ Direct Labor + $ 122,000

or Direct Labor = $ 89,000

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